How to specify in the contract the condition about inclusion of VAT in the price

1 July 2019, Monday

FAS explained how to specify VAT information at the stage of procurement announcement. The Agency also reminded what to do at the conclusion of the contract with the winner of procurement that operates according to the simplified system of taxation.

How to specify the condition of VAT inclusion in the draft state contract

The draft contract should specify the condition of the price in the format "including VAT/VAT is not taxed" (paragraph 2 of the Letter). The Agency explains this by the fact that the winner of the purchase can use a simplified tax system (simplified tax system).

Recall: according to the Supreme court, the customer can specify in the draft contract that the price includes VAT. This does not violate the rights of participants in the simplified tax system because it does not create an unconditional obligation to pay tax.

FAS also drew attention to the fact that the variable wording of the contract price clause is used in some model contracts.

How to deal with VAT at the stage of concluding a state contract

It is not necessary to reduce the contract price if the participant who applies the simplified system of the taxation won purchase (item 1 of the Letter). There are no provisions in Law N 44-FZ that would allow the customer to change the price on this basis.

However, at the conclusion of the contract with the participant who is working on a simplified system of the taxation office recommends that you remove the condition on inclusion of VAT in the price of the contract (paragraph 3 of the Letter).

To do this, the winner of the purchase must send to the customer:

the Protocol of disagreements about the exclusion of contract terms on inclusion of VAT;

documents confirming the application of the simplified taxation system.

After that, the customer will have to replace the condition of VAT inclusion with the phrase "VAT is not taxed" and specify the basis. This will help to avoid disagreements at the stage of acceptance of the contract.

Document: Letter of the FAS of Russia from 18.06.2019 N IA/50880/19